Activision Blizzard (ATVI.O) and Microsoft (MSFT.O) extended the deadline for the completion of their $69 billion transaction by three months on Wednesday, to Oct. 18, as the American giants strive to obtain UK permission for the largest gaming deal in history.
The firms missed their initial deadline of July 18 due to regulatory measures in the United States to stop the takeover and British efforts to restructure it.
The postponement would “provide ample time to work through the final regulatory issues,” according to Microsoft President Brad Smith in a tweet. “We are optimistic about our chances of completing this transaction.”
The revised agreement also boosted the cost that Microsoft owes Activision if either party abandons the takeover – to $3.5 billion from $3 billion if it does not close by Aug. 29, and to $4.5 billion after Sept. 15.
According to Reuters, Microsoft has been attempting to prolong the contract in order to ensure that Activision is not wooed by another possible acquisition or has a change of heart.
If completed, the merger will strengthen Xbox maker Microsoft’s firepower with titles like “Call of Duty” and “Diablo” in a videogame industry where it competes with Tencent (0700.HK) and Sony (6758.T).
Activision surpassed market expectations for second-quarter net bookings and adjusted profit in the second quarter, the company revealed on Wednesday.
“We expect to deliver strong financial performance for the full year, driven by the successful reinvigoration of the Diablo franchise,” stated CEO Bobby Kotick.
In early trade, Activision shares were marginally down, while Microsoft was little changed.
